What is Commercial Real Estate

Real Estate
Commercial real estate is a big part of your everyday life. Learn more about buying retail properties, office space, and industrial properties.
Published on
July 16, 2024
Copy link
Commercial Real Estate

Commercial real estate is a broad term that describes any piece of land or building that is used for non-residential purposes. This includes office space, industrial use, multi-family rental, retail and more. Commercial real estate can be an investment vehicle as well as a long-term investment.

Office Space

Office space is a building that is used for office work. Office space can be rented by companies, or by individuals. Office spaces are usually rented monthly, but they can also be leased for short or long terms.

Office buildings usually have a reception area with desks and phones, meeting rooms, and bathrooms. There may also be storage areas for paper documents and supplies.

Industrial Use

Industrial use is not the same as commercial use. Commercial property is used for office, retail and entertainment purposes. Industrial property is used for manufacturing, warehousing and distribution purposes. Industrial properties tend to be more expensive than commercial properties because they are in areas known for high traffic volumes, such as near airports or ports.

Multi-Family Rental

Multi-family rental is a type of real estate that has multiple tenants in a building. The most common multi-family rentals are apartments and condos, but they can also be townhouses or other types of residences. Multi-family properties may be owned by an investor (either directly or through an investment company) or they may be rented out by the owner to tenants who take care of managing the property themselves.

When it comes to commercial real estate investments, there's an important distinction between owning versus renting: when you own something, you have complete control over what happens at your property; when you rent something instead, there's more risk involved because your tenant could damage the property or stop paying rent at any time without any warning. In general terms: if you're looking for low risk investments with minimal financial outlay required up front (i.e., no mortgage), then multi-families are probably not for you!

Retail

Retail refers to businesses that sell goods and services. It's one of the most common types of retail business, and it can be found in almost every city and country in the world. Retail stores are usually open to the general public, but there are other variations on this type of business that may have restricted access.

Conclusion

Real estate is a complex investment that can have a huge impact on your financial future. To make sure you're making the right decisions, it's important for you to understand commercial real estate and what makes each type of property different from others.

Get started today
Whether you're actively looking, or just researching, you can find out what you qualify for and get connected with a pro.
Apply Now
Create your Real Estate Dream Team
Our financial experts can help team you up with real estate expert. They'll be in it together, making sure you're well-funded and perfectly housed in this challenging market.
Get Started Now
Latest posts

Don't Stop Here

Check out some of these related articles.

Understanding ARM Indexes and Margins: A Comprehensive Guide

Understanding ARM Indexes and Margins: A Comprehensive Guide - This blog post provides a comprehensive guide to understanding ARM indexes and margins. It includes an introduction to key terms such as ARM, indexes, and margins. The post explains what an adjustable rate mortgage (ARM) is and discusses how ARMs work, along with the pros and cons of choosing an ARM. It also delves into ARM indexes, different types of indexes, and how they affect your mortgage rate. Additionally, the post explains ARM margins, how they are determined, and their role in setting your mortgage rate. The relationship between ARM indexes and margins is explored in detail, with real-world examples to illustrate how they influence your mortgage payments. The post concludes with factors to consider before choosing an ARM and tips on making the best decision based on your personal financial situation. Gain a comprehensive understanding of ARM indexes and margins with this informative guide.
Read post

The Psychology of Refinancing: Overcoming Common Fears and Misconceptions

Discover the psychology behind refinancing and how to overcome common fears and misconceptions. Learn why understanding the psychological factors that influence financial decisions is crucial. Explore common fears associated with refinancing and how they can prevent homeowners from taking advantage of opportunities. Uncover misconceptions about refinancing and how they can deter homeowners from considering it. Find strategies for overcoming fears and misconceptions and learn about the potential benefits of refinancing.
Read post

Understanding the Factors Influencing Mortgage Rates

Understanding the Factors Influencing Mortgage Rates - Discover how the Federal Reserve, economic indicators, the housing market condition, credit score, and loan types can impact mortgage rates. Learn how to improve your credit score and choose the right loan to secure the best rates. Keep an eye on these factors when planning to take out a mortgage.
Read post